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Tag: Selling my Business and Tax

Capital gains tax concessions when selling my business

Capital gains tax concessions when selling my business

Small business, Tax
When you sell your business, you may be liable for capital gains tax on the sale. However, there are four small business CGT concessions that can be used to reduce your capital gain on business assets. So long as you meet certain conditions, you can apply for as many concessions as you’re entitled to, until the capital gain is reduced to nil. The four CGT concessions are: Small business 15-year exemption This concession results in no assessable capital gain, when you sell a business asset that has been owned for 15 years, and if you’re aged 55 years or over and are retiring. This exemption also applies if you’re permanently incapacitated. Small business 50% active asset reduction By using this concession, you can reduce your capital gain on a business (active) asset